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What is a "Host Agency" or "Host Travel Agency"?

A "host agency" or  "host travel agency" is a company that "hosts" the businesses of their independent travel consultants.

 

An easy way to understand what a "host agency" or "host travel agency" does is to compare it to ( because it's "similar" to) a "franchise chain": 

The host agency would be the "franchisor" and you (as a home based travel agent) would be the "franchisee".

The main benefit (for YOU) to join a Host Agency (as opposed to being "completely independent") is that you get  immediate access to:

  • a complete business infrastructure (turn-key solution)

  • travel agency tools (reservation systems, etc.)

  • and - VERY IMPORTANT:  commission agreements/levels with travel suppliers.

If you were to start a home based travel agency completely on your own, you'd have to spend months to "set up your business" and perhaps years to climb up the commission ladder with your travel suppliers.


 

Therefore, joining a "host agency" saves you TONS of time and a lot of headaches.
 

In addition, when you establish a 'contract or agreement' with a host agency  you can ( in many cases ) sell travel LEGALLY under the host agency "master Seller of Travel license"(USA) or Provincial Registration (Canada).

 

In some jurisdictions - such as in Ontario, Quebec and British Columbia, Canada - working in affiliation with a Host Agency is the ONLY way to legally act as a home-based travel agent.

In other words, if you live in one the above-mentioned provinces and you want to sell travel and work as a travel agent you MUST:

  • Open and register a retail travel agency
or
  • Join a registered travel agency as an Independent Contractor.

In Ontario, Quebec and British Columbia,  home-based travel agents ( also called "independent" or "outside" agents) MUST have a written agreement with a travel agency that holds a Provincial Registration.

 

Often, the Travel Industry Council of Ontario (Canada) reports cases of individuals who are convicted for "presenting themselves as travel agents or travel counselors" WITHOUT the required Provincial registration.

Which Host Agency should I join?

I guess I'm expected to answer this question by saying:  "I recommend such and such  host agency"...

  However, here's the answer that's really going to help YOU:

You must join a host travel agency whose business model, vision and goals are compatible with YOUR goals and the type of home based travel agency business that YOU wish to start.

For example, if all you wanted to do was to "sell a few trips every year" to your friends, relatives and a few other personal contacts, then joining certain host agencies would NOT be the right thing to do if they cater to individuals that wish to build lucrative travel businesses (which requires a larger commitment and a lot more dedication than if you want to start a "hobby".)

 

If all you want to do is set up a travel related web site, write about your favourite destination or adventures and make a few extra bucks a month... you don't even need a host agency. You can  start a travel-related online business (web site) WITHOUT becoming a travel agent ( You can can examples or 'cases studies' of people who have done that at this other page )

 

Remember, which host agency YOU join should be determined by YOUR goals.

 

Warning:  Do your homework.  Keep your goals in front of you at all times as you research different host agencies and different ways to start your home based travel agency.

A good reason to do your homework is to avoid wasting money: Some host agencies charge as much as $16,000.00 to sign you up as an 'independent travel agent'.  Doesn't it make sense to know your options before you dish out $16,000.00 bucks and "trap" yourself into a contract that might or might not work for you?

On the other hand , beware of those host agencies that charge "nothing" to sign you up.  In this case ask yourself: Would McDonalds or Starbucks or Tim Horton's be able to offer their amazing training and advertising resources  to their 'franchisees' if they charged zero to open one of their stores???

 

Of course NOT.

 



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